Chart Check: This midcap stock from airport space could double in next 2-3 quarters of 2023

GMR Airports and Infrastructure, part of the airport and airport service industry, which gave a breakout from the double bottom pattern on the quarterly charts could well double from current levels, suggest experts.

The stock which is part of the S&P BSE Midcap index hit a record high of Rs 46.84 on 5 January 2022 but it failed to hold on to the momentum.

A double bottom pattern is usually formed at the bottom and indicates the end of a falling market. The pattern is formed by two clear bottoms separated by a top. The confirmation occurs when the price goes above the resistance line.
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The stock is picking momentum and is now trading near record highs. GMR Airport and Infrastructure closed at Rs 41.50 on 16 December 2022.

The momentum helped the stock to breakout from a double bottom pattern on weekly charts and chart patterns suggest that it has started its next leg of the upmove after recent consolidation.

The stock rose nearly 14% in a month and over 20% in the past 6 months.

On the price front, the stock is trading below 5 and 10-DMA while it is still trading above 30,50,100, and 200-DMA.

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The Relative Strength Index (RSI) is 52.8, RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed.

“Midcap stocks is the flavour of this quarter, so we have selected the best of the pack.

on the quarterly charts has tested the levels of 10 twice (30.09.2013 & 30.12.2016 quarter) & has formed a double bottom pattern,” Sujit Deodhar, Head – Technical Analyst, Wellworth Share & Stock Broking, said.

This stock had a quarterly closing above the neckline of 34 levels in the September 2021 quarter confirming the breakout.

The stock made a high of 49.15 levels in its first leg of up move and corrected back to retest the neckline by forming 2 Doji candles in the past two quarters.

“It can be observed that the stock has resumed its second leg of up move at 41.80 levels in the current quarter by piercing the highs of doji candles,” he said,

“Technical indicator RSI is positive on quarterly charts supporting the bullish stance. So GMR Infra qualifies for a buy at current levels of Rs 43.35, to be added on dips to the levels of Rs 35-34 with stop loss to be placed at Rs 31 levels on daily close basis,” highlights Deodhar.

“A breach of 49.15 levels will add more strength to the upside momentum & the target of 80 levels can be visible in next 2-3 quarters,” he recommends.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)

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